May 9th, 2010 11:47 PM by Eric Fang
The market was crzay last week when the DOW was done 1000 points in one day, no matter whether it was a human error or not.
That's the opportunity we talked about a lot in the previous blogs. I will recommend to lock the rates whenever we have those opportnity. So we have lots of friends locked the rate last week, for 5/1ARM, 30 yr fixed and 15 yr fixed etc.
And from the experience we had from the past, the rate should go up the next week. Will we see this level again? We don't know. But we all know the global financial market is trying hard to resolve any issues we may have. Hopefully the problems with the PIIGS will not spread to the other countries.
If any of you watched LIBOR index recently(I checked it everyday), it went from 0.851 of last Nov to close of 1 now. What that tell us? ARM rate is close to the bottom now.